Ayala profit dips 5% as real estate business slows in Q1

Insider Spotlight

• Ayala Corp.’s first-quarter core net income was flat at P11.2 billion as stronger earnings from Bank of the Philippine Islands (BPI) and Globe Telecom offset weaker contributions from Ayala Land Inc. (ALI).
• Reported net income fell 5 percent to P12 billion due to the absence of last year’s one-off gains tied to Mitsubishi UFJ Financial Group’s investment in Mynt.
• ALI’s profit dropped 23 percent as property development revenues slowed, while ACEN’s core earnings declined on higher depreciation and financing costs.
• Ayala said it remains focused on cash generation, cost discipline, and capital allocation amid volatile global conditions.
  
  
  

Ayala Corp.’s reported net income declined 5 percent to P12 billion in the first quarter as softer earnings from its property business and lower one-off gains offset stronger banking and telecommunications results. 

Core net income, which excludes nonrecurring items, was steady at P11.2 billion.

The conglomerate’s results underscore the resilience of its diversified portfolio as banking and telecom operations cushioned weakness in real estate and some emerging businesses amid uncertain macroeconomic conditions.

By the numbers

BPI remained Ayala’s largest earnings contributor, with net income rising 2 percent to P16.9 billion on double-digit revenue growth and loan expansion across segments. 

Revenues climbed 14 percent to P50.9 billion, while total loans increased 14 percent to P2.6 trillion. However, provisions surged 83 percent to P5.5 billion and return on equity slipped to 14.3 percent from 15.4 percent.

Globe’s core net income increased 9 percent to P4.9 billion, supported by higher mobile and broadband revenues and stronger equity earnings from fintech affiliate Mynt. 

Ebitda, or earnings before interest, taxes, depreciation and amortization, rose 7 percent to P22.2 billion, lifting Ebitda margin to 52.8 percent.

ALI posted a 23 percent decline in net income to P5.4 billion after property development revenues fell 27 percent to P20.3 billion. 

Residential revenues dropped 21 percent, while estate lot and office-for-sale revenues plunged 50 percent. Leasing and hospitality revenues partly offset the decline, rising 9 percent to P12.6 billion.

ACEN’s core net income fell 27 percent to P1.4 billion due to higher depreciation and financing costs despite stronger renewable energy output. On a reported basis, however, net income jumped 50 percent to P2.9 billion.

 Cezar Consing

CEO, Ayala Corp.

Emerging businesses

AC Health posted a net loss of P143 million from P59 million as higher manpower-related costs outpaced 24 percent revenue growth. Similarly, Ebitdda declined by 21 percent to P209 million from P265 million a year ago.

ACMobility trimmed its core net losses to P109 million from P168 million supported by strong volume growth and the absence of losses from prior portfolio divestments. Total unit sales increased 34 percent to 12,299 from 9,206, primarily driven by BYD. 

IMI recorded a net income of $4.5 million from $3.7 million driven by improved operating profitability and lower financing costs while AC Logistics narrowed its net loss to P167 million from P322 million, supported by lower variable costs, disciplined spend, and a higher-quality revenue mix. 

What they’re saying

Given global macro conditions, our near-term focus is on resiliency through stronger cash generation, prudent cost management, and disciplined capital allocation. Our portfolio is positioned for long-term value creation,” Ayala CEO Cezar Consing said in a press statement on May 13, 2026.

The bottom line

Ayala said its balance sheet remained “strong and resilient,” with consolidated cash rising to P71.9 billion and consolidated net debt-to-equity ratio at 0.81x, well below its covenant limit of 3.0x. — Vanessa Hidalgo | Ed: Corrie S. Narisma